Let’s understand this below
Not Automatically.
The Biggest Challenge is INFLATION.
If your monthly expenses is Rs 2 Lakh today, it may keep rising every year.
At the same time, Fixed Income option may deliver lower post-tax returns than the rate at which your expenses are increasing.
That Creates a retirement risk:
Your withdrawal rate may eventually become higher then your portfolio returns.
A structured approach may include:
1) Set the right withdrawal rate Through SWP a commonly used planning range is around 3% to 4% initially.
2) Build the right Corpus for Rs 2 Lakh monthly retirement income a broad planning range may be around 6 crores to 8 Crores, subject to inflation, longevity and other goals.
3) Use a 3-Bucket Strategy:
a)Cash-Flow Bucket for near term withdrawals
b) Income Bucket for stability.
c) Growth Bucket for long term inflation protection.
Points to be noted:
retirement planning is not only about how much corpus you have.it is about how much you withdrawal, how fast expenses rise and how your portfolio is structured.